Analysts had expected a loss of 16 cents a share, according to estimates from Thomson Reuters.

It was the first quarterly loss for Goldman since the fourth quarter of 2008, and only the second since the bank went public in 1999.

Despite the poor performance, shares of Goldman were up 2% in morning trading.

David Viniar, Goldman's finance chief, said the third quarter was dominated by concerns about the slowing global economy and the risk of a deepening sovereign debt crisis in Europe.

Goldman said it has a "gross credit exposure" of $4.2 billion to the five most troubled euro area nations, including government and corporate debt. After taking hedges into account, the exposure totals $2.5 billion, he said.

In addition, Goldman (GS, Fortune 500) reported a 33% drop in revenue from investment banking to $781 million as fees dwindled from initial public offerings, mergers and acquisitions and corporate debt deals.

Goldman also saw revenue decline from its "market making" operations, in which it matches buyers and sellers of securities.